Oppressed shareholder golden chains

Are you an oppressed shareholder? What the law can do to protect you

Estimated reading time: 6 minutes

Minority shareholders in Australia are generally beholden to the majority shareholders. However, in some cases, minority shareholders of private companies do have recourse available to them. In this blog article, we look at the ‘minority shareholder oppression remedy’ available in section 232 of the Corporations Act 2001 (Cth), and the orders available to the Court in enforcing that remedy.

Shareholders agreements

Shareholders agreements — standard terms and why they are useful

Estimated reading time: 5 minutes

A dispute between shareholders can derail the small and medium-sized businesses that make up the bulk of the Australian economy. Here we explain how a shareholders agreement can help reduce the risk of serious dispute. 

Fast track sale in a voluntary administration

What is a fast track sale in a voluntary administration?

Estimated reading time: 6 minutes

Fast track sales involve the voluntary administrator selling the assets of a business during a voluntary administration, instead of recommending a debt compromise or ‘Deed of Company Arrangement’. While a fast track sale in a voluntary administration is legal, it is relatively uncommon in Australia. Here we explain how fast track sales work, and consider whether they are a desirable feature of Australian insolvency law. If it occurs, company directors may feel betrayed by a voluntary administrator if they are expecting a debt restructure through a ‘Deed of Company Arrangement’.

Local tax obligations for Australian startups

Worldwide taxation – a challenge for Australian startups

Estimated reading time: 6 minutes

Australia applies ‘worldwide taxation’ when calculating corporate and personal income tax. This means Australian startups can owe tax in Australia for all their international activities, even where the founder has moved overseas. Here we explain the key tax rules for Australian startups.

How can creditors participate in a voluntary administration creditors’ meeting

How can creditors participate in a voluntary administration creditors’ meeting

Estimated reading time: 6 minutes

The primary way in which creditors can influence a voluntary administration is through participation in either the first or second creditors’ meeting — meetings chaired by the voluntary administrator. Through this process creditors can replace voluntary administrators, have a say on remuneration and costs, approve of a debt compromise and more.

Regular cashflow projections are important for business.

Regular cash flow projections and comparison to actuals

Estimated reading time: 7 minutes

Cashflow refers to the movement of money into and out of business, and it is one of the essential financial indicators for the business. This is why a proper financial record keeping is so important.

If Economic Distress, Liquidate. If Financial Distress, Save through Restructure.

If Economic Distress, Liquidate. If Financial Distress, Save through Restructure.

Estimated reading time: 0 minutes

Businesses can struggle or fail in different ways. Consider an unprofitable transport business that hasn’t been able to put up rates in 20 years due to stiff competition. Or, consider the same type of business, where its unprofitability is caused by the inability to pay debts entered into by prior directors.